Investing 101
Welcome to our Hoyes Michalos Debt Free Digest where we round up personal finance topics from around the web to help you live, and remain, debt free.
Where do you get started on investing once you’re debt free? If investing is your next financial goal, here are some articles to help you learn about investing basics so even a small saving amount can earn money and grow.
Investing When You’re Debt Free
So you want to enter the investing world. Is the stock market the right place to go? Are buying mutual funds a good idea?
Tune in to the podcast to get answers to these questions. Find out why you should consider timelines before investing in specific accounts and discover your investor ‘personality type’ to understand how well you handle risk.
Good Reads From Around the Web
Basics of Investing Guide
Before you start investing, it’s important to familiarize yourself with all the different types of investments, their fees, and how taxes apply to them.
In this free resource provided by the Government of Canada, learn about common investment terms, risk levels of investments, costs, and more.
Personal Finance Q&A
“How much should I have saved up before I start investing?”
How much money you need saved up is a very personal decision, as it depends on your financial situation. We suggest your first priority should be to ensure you have a buffer of at least $1,000 saved for common emergency expenses like an appliance or car repair, for example.
Once you’ve built this buffer, you need to determine your next financial goal. Do you think you’ll need a larger emergency fund? Are you at risk of facing a job loss or health issues and will need money to cover you for these risks? Are you planning to buy a car or home and want to save up a down payment? Ask yourself these questions are you’re saving and then start investing when you feel you’re happy with your fund amounts.
One important note: while we understand it’s common to invest funds that you won’t need access to for several years, your emergency fund/buffer should always be readily available cash that you can access easily at any time.
If you are going to invest your emergency fund, it should be in an account that is safe from market risk. You also need to make sure that there are no costs to you for closing your invested fund, in the event that you need to convert the fund into cash to pay for an emergency.
The simplest approach is to have your emergency fund/buffer at a bank in a savings account (rather than chequing) that is accessible by your by your debit card. This will also ensure you can get the money when you need it.
$50 Petro-Canada Gift Card Giveaway
Enter for your chance to WIN 1 of 10 free $50 Petro-Canada gift cards!
Once again, we want to help you save on rising gas prices. This month, we’re giving away 10 free gift cards to Petro-Canada.
Enter soon. Giveaway ends April 28, 2022 at 11:59 p.m.
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